U.S. Consumer Sentiment Hits Lowest Level Since 2022 as Inflation and Tariff Concerns Grow

The University of Michigan survey shows a sharp decline in confidence, with inflation expectations rising and economic uncertainty escalating.

The Michigan Consumer Sentiment Index dropped to 57.9 in March, marking a 10.5% decline from February and the lowest level since 2022.
This is the third consecutive month of falling consumer confidence, with sentiment now down 22% since December 2024.
Rising inflation expectations, projected at 4.9% for the next year, and concerns over President Trump's tariff policies are driving pessimism.
Consumers across all demographics and political affiliations reported declining confidence, with Democrats and independents seeing the largest drops.
Economists warn that prolonged uncertainty over economic policies could further dampen consumer spending, which constitutes two-thirds of U.S. economic activity.